According to U.S. Department of Labor (DOL) 40 state unemployment trust funds will be drained by 2011 due to the current jobless toll.  Employers’ unemployment taxes for 2010 are projected to rise as a result.  A survey of the 50 states and Puerto Rico shows that 35 states have increased their unemployment insurance (UI) taxes on employers for 2010.  Twenty-seven states including Pennsylvania, Ohio, and New York said that the tax schedule in their states would see an increase in 2010 compared to 2009.

Although many states are increasing the UI tax, the average tax rate on total wages paid by employers is relatively low by historical standards.  Since 1938, the average national UI tax rate on employers as a percent of wages ranged from 0.5 percent to 2.7 percent, while the average national UI tax rate on employers as a percent of taxable wages has varied between 1.25 percent and 3.25 percent according to the DOL.

Seven states, including West Virginia will increase their “taxable wage base” the level of wages subject to a payroll tax on employers.

Please refer to your individual state government website for specific information.